Fraudulent claims on the rise

A major comparison site has found that 4.3 million people with home insurance are willing to consider making a false claim.

Of these people, four per cent (or 1.5 million) admit they’d consider making a false claim – or had already done so – regardless of the economic climate.

Worryingly, almost 780,000 people have already defrauded their home insurer by successfully making a false insurance claim in the past five years.

Peter Harrison, insurance expert at MoneySupermarket, said: “It’s extremely concerning to discover so many people are contemplating making a false or exaggerated claim on their home insurance. With recent news that the UK has slipped into a double-dip recession, household finances will undoubtedly be stretched, but no matter how tempting, fabricating a claim for a payout is illegal, and you could face being prosecuted as a result.”

Insurance companies take fraud very seriously, no matter how big or small the amount being claimed for. If insurers are suspicious of a claim’s validity, it will be investigated with specialist detection processes and anti-fraud technology. Anyone caught and found guilty of insurance fraud would find it extremely difficult to get insurance in the future. Previous convictions for insurance fraud must be disclosed on application forms for any type of insurance. Insurance premiums will be much more expensive for someone guilty of making a false claim, and in some cases insurers may not be willing to offer cover at all.

Males are more likely to make a fraudulent claim (14 per cent) compared to females (eight per cent). Those under the age of 35 are more likely to act dishonestly, with 21 per cent making, or likely to make, a false claim compared to just 10 per cent of over-45s.